Plymouth grapples with changes in recycling market

Frank Mand fmand@wickedlocal.com @frankmandOCM

Monday

Mar 12, 2018 at 9:00 AMMar 30, 2018 at 11:09 AM

Due in part to problems with the international recyclables market – mainly stricter regulations governing how clean recyclables that China buys must be – ABC no longer can sell its recyclables for a profit.

The recyclables - the glass and metal and cardboard that many Plymouth residents diligently separate, put into their big blue cart and watch with pride as the trash man hauls it away each week - that stuff is going nowhere fast.

Due to a drop in the price paid for recyclables for the past several months ABC Disposal, with whom the town contracted to haul residential curbside trash and recyclables, has been trying to “negotiate” their way out of their obligation to pick it up or seeking more money to do so.

Fluctuations in the recycling market are not unusual. Big trash companies use a variety of techniques to smooth out those bumps, often storing recyclables until market conditions improve.

But due in part to problems with the international recyclables market – mainly stricter regulations governing how clean recyclables that China buys must be – ABC no longer can sell the recyclables they get from Plymouth residents and other communities for a profit.

What does that mean to you?

At this moment, nothing. ABC is still picking up recyclables, but that could change.

“ABC approached us in early December,” Town Manager Melissa Arrighi said recently. “They said they were struggling with their recycling costs, and were hoping we would share in the burden.”

The Town Manager reminded ABC that their contract called for the New Bedford-based company to assume the risk – and reap the benefits – of the often mercurial price of recyclables.

Nevertheless, ABC sent new bills reflecting the company’s “real recycling costs” to Plymouth and the other municipalities they have contracts with.

Then they went on a good will tour of those municipalities.

“We met with ABC, and they said that, in good faith, they wanted to reopen the contract,” Arrighi said. “We felt that, in good faith, they took the risk, that this is their line of work and they should understand how to manage that risk.”

ABC has actually been a leader in the adoption of many new approaches to trash and recycling, including developing a facility that would turn recyclable materials into fuel cells.

But they have also had more than their fair share of financial woes along the way, leaving them vulnerable to changes in the marketplace.

When the contract between Plymouth and ABC was first negotiated several years ago control of recyclables was a major issue.

Many residents criticized the town for giving up the revenue from recyclables in the agreement they signed. But the town was worried that if the price dropped they’d be literally holding the bag.

The town made the right decision, but that’s cold comfort now.

The problem here appears to be more serious and long term, so while rebuffing ABC’s request to renegotiate their contract the town has begun to aggressively explore what can be done with recyclables over the long haul.

Arrighi says the town has reached out to other communities, and to the state.

“We need help from the Department of Environmental Protection, Arrighi said. “They oversaw the whole recycling initiative, made it easy for us to do (recycle).”

The town has also reached out to other ABC communities.

“We hosted a productive meeting with New Bedford, Fairhaven and Seekonk to discuss similarities in our recycling challenges,” Arrighi told the Board of Selectmen, “both contractual and at the transfer station.”

The town hopes to be able to coordinate their efforts with most if not all of the communities in this region, giving them greater economic and political leverage.

Plymouth has also engaged CommonWealth Resource Management Corporation, which will draft a letter from the selectmen to the town’s legislative delegation requesting that they assist with formally asking DEP to provide guidance with the recycling challenges facing the commonwealth.

Arrighi wants to be clear that the town “hasn’t shut the door on working with ABC on these issues,” but says she needs to see more facts, more specific financial data from the hauler.

Arrighi also wants to know more about how the other approved haulers are dealing with this situation but she may not find encouragement there.

According to Plymouth Public Health Director Nate Horwitz-Willis, only a third of the town’s nine licensed haulers are fully meeting the requirements that come with their permits to pick up trash in Plymouth.

What exactly they are doing with their recyclables Arrighi is not sure.

“If they aren’t separating out the recyclables they can’t just take it to (Covanta) SEMASS (a solid waste disposal and recovery facility in Rochester),” Arrighi said. “They’ll get rejected. “

If SEMASS tears open a trash bag from a private hauler and finds recyclables that company could fine the hauler or, possibly, reject the entire load.

The smaller haulers have fewer options.

Many of the larger trash companies have agreements already in place; contingencies for situations like this one including companies willing to fill up their bays with plastic and cardboard and then wait until the market changes.

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